Nexpoint Real Estate Finance, Inc. · NYSE:NREF
Nexpoint Real Estate Finance — Q3 2020 Earnings Presentation
20 slides from Nexpoint Real Estate Finance's earnings presentation, Oct 29, 2020
Slide 1: 3Q 2020 Financial Supplement
exuiarT99.2 29.0CTOBER 2020 | NYSENREF 3.2020 FINANCIAL SUPPLEMENT NEXPOINT REAL ESTATE FINANCE
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be id
Slide 3: NexPoint Real Estate Finance Company Overview
NEXPOINT REAL ESTATE FINANCE NexPoint Real Estate Finance, Inc. (“NREF” or the “Company”) is a publicly traded mortgage REIT (“mREIT”), with its shares listed on the New York Stock Exchange. The company primarily concentrates on investments in real estate sectors where its senior management team has
Slide 4: 3Q 2020 Highlights
3Q 2020 HIGHLIGHTS SEE “RECONCILIATIONS” SLIDE AS OF OCTOBER 28, 2020 LOAN TO VALUE IS GENERALLY BASED ON THE INITIAL LOAN AMOUNT DIVIDED BY THE AS –IS APPRAISED VALUE AS OF THE DATE THE LOAN WAS ORIGINATED OR BY THE CURRENT PRINCIPAL AMOUNT AS OF THE DATE OF THE MOST RECENT AS-IS APPRAISED VALUE. F
Slide 5: 3Q 2020 Financial Snapshot
3Q 2020 FINANCIAL SNAPSHOT Net interest income of $4.4MM, a decrease of 4.3% over 2Q 2020 Net income of $11.5MM, with net income attributable to common stockholders of $2.9MM, or $0.52 per diluted common share; compared to net income attributable to common stockholders of $5.3MM, or $1.00 per dilute
Slide 6: 3Q 2020 Financial Snapshot: Dividend and 4Q Guidance
3Q 2020 FINANCIAL SNAPSHOT NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS IN 4Q 2020 IS ESTIMATED TO BE $2.7MM AND $2.8MM AT THE MID-POINT, RESPECTIVELY. SEE “RECONCILIATIONS” SLIDES. NREF CLOSED ITS IPO ON FEBRUARY 11, 2020, AS SUCH, THE QUARTER OVER QUARTER CHANGE SHOWN IN 2Q 2020 IS CALCULATED US
Slide 7: Portfolio Commentary
PORTFOLIO COMMENTARY The current portfolio consists of senior loans, mezzanine debt, preferred equity and preferred stock investments in short-duration lease-term assets (multifamily, SFR, self-storage) that are geographically diverse in the United States. The portfolio has no exposure to constructi
Slide 8: Portfolio Commentary: Geographic and Asset Type Exposure
PORTFOLIO COMMENTARY AS OF SEPTEMBER 30, 2020 AND INCLUDING THE 18 MEZZANINE LOANS CLOSED OCTOBER 20, 2020 AS A % OF OUTSTANDING PRINCIPAL AS OF SEPTEMBER 30, 2020 INCLUDING THE 18 MEZZ LOANS CLOSED OCTOBER 20, 2020 AND EXCLUDING THE PREFERRED STOCK (JCAP SERIES A PREFERRED) Diverse geographic expos
Slide 9: Pro Forma Capitalization
PRO FORMA CAPITALIZATION ESTIMATED AS OF OCTOBER 28, 2020 AND GIVING EFFECT TO THE $59.9MM OF ADDITIONAL FREDDIE MAC FINANCING USED TO ACQUIRE THE 18 MEZZANINE LOANS , THE $36.5MM OF SENIOR UNSECURED NOTES ISSUED BY THE COMPANY AND PAYDOWN ON THE MASTER REPURCHASE AGREEMENTS OF APPROXIMATELY $824K A
Slide 10: Recent Transaction: Floating-Rate CMBS B-Piece
RECENT TRANSACTION: FLOATING-RATE CMBS B-PIECE B-Piece Summary1 BASED ON JULY 1, 2020 CUT-OFF DATE. CALCULATED USING UNDERWRITTEN NET CASH FLOW INVESTMENT HAS A 0% FLOOR CALCULATED USING PROJECTED CASH FLOWS Payment Structure: Floating-rate with current pay Purchase Price/Par Value: $67MM / $67MM %
Slide 11: Recent Transaction: Fixed-Rate CMBS Investment
RECENT TRANSACTION: FIXED-RATE CMBS INVESTMENT Collateral Pool Summary1 Underlying Pool Balance: $1.5B Weighted Avg Mortgage Interest Rate: 3.22% Interest Only DSCR4: 2.2x Average Loan to Value: 69.0% Number of Properties: 62 Number of Units: 13,071 Weighted Avg Occupancy: 93.1% Weighted Avg Rent/Un
Slide 12: Recent Transaction: Mezzanine Loan Portfolio
RECENT TRANSACTION: MEZZANINE LOAN PORTFOLIO Collateral Pool Summary1 Investment Summary1 % LTV DSCR YIELD2 TERM (YEARS) First Mortgages $745MM 73.6% 1.6x 4.3% 9.6 Mezzanine $99MM 83.4% 1.4x 7.5% 9.6 Borrower Equity $168MM 100.0% N/A N/A N/A Total / Wtd. Avg. $1.01B 100.0% 1.4x 4.7% 9.5 NREF EQUITY
Slide 13: Appendices
APPENDICES INTENTIONALLY LEFT BLANK
Slide 14: Appendix: Portfolio
APPENDIX: PORTFOLIO # Investment1 Location Property Type Investment Date Current Principal Net Equity2 Coupon3 Remaining Term4 Loan to Value DSCR 1 Senior Loan Various SFR 2/11/2020 $508,700 $83,514 4.65% 7.9 68.1% 2 Senior Loan Various SFR 2/11/2020 62,023 10,104 4.95% 8.4 65.0% 3 Senior Loan Vario
Slide 15: Appendix: Portfolio
APPENDIX: PORTFOLIO # Investment1 Location Property Type Investment Date Current Principal Net Equity2 Coupon3 Remaining Term4 Loan to Value DSCR 1 CMBS B-Piece Various Multifamily 2/11/2020 $74,4725 $33,895 6.15%6 5.4 65.4% 2 CMBS B-Piece Various Multifamily 2/11/2020 53,6235 27,548 6.15%6 6.2 65.6
Slide 16: Appendix: Portfolio
APPENDIX: PORTFOLIO # Investment1 Location Property Type Investment Date Current Principal Net Equity2 Coupon3 Remaining Term4 Loan to Value DSCR 16 Mezzanine Tyler, TX Multifamily 10/20/2020 2,135 871 7.74% 8.0 83.1% 17 Mezzanine Temple Hills, MD Multifamily 10/20/2020 1,500 612 7.22% 10.8 78.6% 18
Slide 17: Appendix: 3Q 2020 Financial Summary
APPENDIX: 3Q 2020 FINANCIAL SUMMARY Balance Sheet Income Statement For the three months ended September 30, 2020 June 30, 2020 Interest income $10,492 $9,821 Interest expense 6,102 5,216 Net interest income 4,390 4,605 Other income (loss) 10,039 17,057 Total operating expenses 2,888 2,389 Net income
Slide 18: Appendix: Reconciliations
APPENDIX: RECONCILIATIONS $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of Net Income (Loss) to Core Earnings 3Q 2020 2Q 2020 1Q 2020 Net income attributable to common stockholders $2,862 $5,270 $(6,353) Adjustments: Amortization of stock-based compensation 252 39 Loan
Slide 19: Appendix: Reconciliations
APPENDIX: RECONCILIATIONS $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of 4Q 2020 Net Income to Core Earnings Low Mid High For the three months ended December 31, 2020 December 31, 2020 December 31, 2020 Net income attributable to common stockholders $2,423 $2,533 $2,6
Slide 20: Contact NexPoint Real Estate Finance
CONTACT NEXPOINT REAL ESTATE FINANCE (NYSE:NREF) 300 Crescent Court, Suite 700 Dallas, Texas 75201 Website: www.nexpointfinance.com Phone: 972.628.4100
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